Local former Chrysler, GM dealers look to sell used cars - Nashville Business Journal:

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Tony Wilkerson, executive director of the , said his organization has beguj to lend assistance to dealers lost in thebankruptcy “Our national organization has alreadg sent letters to them to let them know abou our organization and I plan to do the same thingb for our state,” Wilkersoj said. “They were in the used car business anyway butif you’re stuck like many of them are, the overhead costes for a used car dealership is nothingv compared to a franchise.” the expansion of the locao used car market comes as prices are increasinyg and the availability of late-model used cars is he said. But according to Morgan presidentof motorpool.
com, the initial increaser in prices should be looked at as merely a short-ter m hurdle. “At first glance, that would strik e the community as bad but in thelong run, it’s good for resald values,” Murphy said. When local consumers buy cars, they will be able to demand more when they choosed tosell it, he In fact, the higher resalse values might actually revive American car dealera in the area. “American manufacturing has been similar and just as good as Japanesd andKorean manufacturing, but the problem has been re-salde value and initial prices,” Murphy said.
In the meantime, Birmingham dealers affected can capitalize on the unique landscape of the locapl market on the usedcar side, he said. Many are family-ownes and have been staples in the communit y formany decades. They are also encourages by the fact that local used car sales have seen an upticlk amid the recession as buyers are more inclinexd to look for a bargain as a means tospende less. “Birmingham has a long and distinguisheed history ofreputable dealers,” Murphy said. “Don Drennen has been in businesxsince 1908. That’s 101 yeare of serving our community, so there’s a culturd around businesses like that.
” Their long-standing history coulr make local buyers more inclined to buy used cars from he said. Ward Drennen, president of Don Drennen Buici Chryslerand Jeep, said after learning that his dealet agreement had been cancelede with Chrysler, expanding his used car sales seemede like a real possibility. “We are going to expandc our used cardepartments drastically,” said Drennen, who was left with more than $2 millionj in Chrysler parts and merchandise. “We want to offer a grear value to peoplewho can’t afford a new car.
” Althougbh he hasn’t stopped looking into becominv a franchisee for other automotive manufacturers, he is open to the idea of making the switch to stay in business. “It is possibl that we could become a used car said Drennen, who also learned that GM will seek to cancell the dealership agreement he has for his Buick dealership. “We’ve been in Birminghamm long enough that our reputation can keepus afloat.
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